10-Q · July 28, 2026
Kilroy's Q2 revenue of $272.371 million and GAAP EPS of $0.17 improved sequentially from approximately $270 million and a $(0.16) loss in Q1, with calculated operating margin recovering to approximately 24.0%. However,…
Earnings analysis · 10-Q
KRC earnings analysis
Filed October 23, 2026 · Our reading of the company's report
The latest report
KRC reported third-quarter revenue of $266.75 million, down 1.9% sequentially and 4.7% year over year, while EPS of $0.88 matched consensus. Operating margin improved 490 basis points sequentially to 28.9%, although EPS…
Read full summary
KRC reported third-quarter revenue of $266.75 million, down 1.9% sequentially and 4.7% year over year, while EPS of $0.88 matched consensus. Operating margin improved 490 basis points sequentially to 28.9%, although EPS remained below the $1.31 reported in Q3 2025. Full-year FFO guidance was narrowed to $3.55-$3.59 with the midpoint unchanged at $3.57, and the 10-Q disclosed no material risk-factor or market-risk changes.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.88
What stood out
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Revenue declined sequentially and year over year
Third-quarter revenue was $266.75 million, down from $272 million in Q2 2026 and $280 million in Q3 2025, representing sequential and year-over-year declines of approximately 1.9% and 4.7%, respectively.
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Operating margin recovered sequentially
Operating margin improved to 28.9% from 24.0% in Q2 2026, a 490-basis-point sequential increase, and was unchanged from 28.9% in Q3 2025.
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EPS beat was in line with consensus
Reported EPS was $0.88 versus $0.17 in Q2 2026 and $1.31 in Q3 2025; EPS matched the $0.88 consensus estimate.
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Full-year FFO range narrowed
Management narrowed 2026 Nareit FFO per share guidance to $3.55-$3.59 from $3.49-$3.63, while retaining the $3.57 midpoint.
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No reported control deficiencies
The 10-Q states that disclosure controls were effective at the reasonable assurance level as of September 30, 2026, with no material changes to internal control over financial reporting.
What to watch
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Existing market risks remain
The filing states there were no material changes to the market-risk disclosures for the nine months ended September 30, 2026; therefore, the existing interest-rate and financing risks from the 2025 Form 10-K remain applicable.
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Routine litigation exposure
As of September 30, 2026, the company reported no legal proceedings that it believed would have a material adverse effect on financial condition, results of operations, or cash flows, but it remains subject to routine litigation incidental to its business.
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No update to existing risk factors
The company stated that there were no material changes to the risk factors included in the Form 10-K for the year ended December 31, 2025, so the filing provides no mitigation of previously disclosed business, operating, leverage, or occupancy risks.
Management's outlook
2026 Nareit FFO per share guidance was narrowed to $3.55-$3.59 from $3.49-$3.63; the midpoint remained $3.57. No separate quantitative revenue guidance was provided in the 10-Q.
Earlier filings 4
10-Q · April 28, 2026
Kilroy Realty's Q1 2026 earnings report indicates a slight decline in revenue compared to the previous quarter but an increase in diluted EPS, showcasing improved profitability. The company raised its year-end Nareit…
10-K · February 11, 2026
Kilroy Realty positions itself as a premier West Coast-focused REIT concentrated in office, life science and mixed-use assets with a strategy built around operating execution, capital recycling, disciplined development…
10-Q · October 28, 2025
Kilroy reported Q3 results with total revenues of $279,744,000 and diluted EPS of $1.31, materially higher than the prior-year quarter’s $0.44 per diluted share largely due to a $110,484,000 gain on sales of depreciable…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.